StockMarketWire.com - Duke Royalty said Monday it had acquired rival Capital Step in a deal worth up to £23.15m.

The acquisition more than doubled Duke's royalty portfolio, increasing the company's core investments from five to eleven, accelerating the its growth plans and providing portfolio diversification benefits, Duke said.

The deal implied an enterprise value of £21.65m consisting of an initial £10m of paid in cash and the assumption of £11.65m of debt.

Duke also agreed to pay a deferred consideration up to a maximum of £1.5m, dependent on performance related milestones to the period ended 31 March 2020.

The new royalty partners were in a range of diversified industry sectors, including new investment sectors such as telecommunication services, media, recruitment, insurance broking and technology solutions, the company added.

The acquisition was expected to be immediately accretive to Duke's shareholders in terms of cash flow per share and assists with the company's strategy to consistently increase its quarterly dividend.

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